South Korean consumer durables major LG Electronics India is betting big on the rural and semi-urban markets. The company plans to increase delivery centres, ramp up of after-sale-service points and introduce customised products in rural and semi-urban markets to attract customers.
“A rural consumer wants to have right products at the right price and not necessarily opt for the lowest-priced product,” Moon Bin Shin, managing director LG Electronics India told HT . The company is devising marketing strategies for each state of the country, he said. “Around 6 per cent of revenues will be spent on marketing.”
The company expects LCD (liquid-crystal display) televisions and mobile handsets to be its major sales drivers. At present, both products contribute close to 25 per cent to the company’s sales. The figure is expected to double by 2015. “Our newer versions of LCD televisions will have still better sound quality as rural customers have a propensity towards televisions with good sound,” Shin said.
On the company’s strategy on mobile handsets, he said that though handsets are available, lack of after-sale-service is driving away rural consumers from cheaper brands.
LG India expects to earn a total revenue of Rs 19,000 crore during calendar year 2010 and has set a target to of $9 billion (Rs 41,400 crore) by 2015.